Nissei Plastic Industrial : Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended September 30, 2023 (Based on Japanese GAAP)

					November 10, 2023
Company name:	NISSEI PLASTIC INDUSTRIAL CO., LTD.
Stock exchange listing:	Tokyo, Nagoya
Stock code:	6293	URL http://www.nisseijushi.co.jp
Representative:	President & Representative Director	Hozurni Yoda
Inquiries:	Director		Kauyoshi Horiuchi	TEL [phone]
Scheduled date to file Quarterly Securities Report:	November 10, 2023
Scheduled date to commence dividend payments:	December 4, 2023
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)

(1) Consolidated operating results (cumulative)				Percentages indicate year-on-year changes
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Six months ended September 30, 2023	22,580	(9.6)	773	(51.7)	800	(53.1)	565	(55.1)
Six months ended September 30, 2022	24,977	20.0	1,601	30.9	1,707	42.4	1,259	(20.5)

	Earnings per share	Diluted earnings per share
		Yen				Yen
Six months ended September 30, 2023		29.19			28.53
Six months ended September 30, 2022		64.56			63.18
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen		Millions of yen		%
As of September 30, 2023	81,523		41,505		50.5
As of March 31, 2023	77,645		39,663		50.7
2. Cash dividends
				Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end
	Yen			Yen			Yen	Yen
Year ended March 31, 2023	-			20.00			-	15.00
Year ending March 31, 2024	-			15.00
Year ending March 31, 2024 (Forecast)							-	20.00

Total

Yen 35.00

35.00

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	46,000	(11.9)	1,200	(55.3)	1,300	(46.5)	900	(51.0)	46.15

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 2023 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of September 30, 2023	22,272,000	shares	As of March 31, 2023	22,272,000	shares
Number of treasury shares at the end of the period
	As of September 30, 2023	3,037,955	shares	As of March 31, 2023	2,768,705	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2023	19,373,812	shares	Six months ended September 30, 2022	19,503,295	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

		(Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Assets
Current assets
Cash and deposits	11,301	9,383
Notes and accounts receivable - trade, and contract assets	8,015	5,983
Electronically recorded monetary claims - operating	606	849
Merchandise and finished goods	13,070	17,480
Work in process	6,415	7,802
Raw materials and supplies	13,717	13,807
Accounts receivable - other	3,438	2,112
Other	1,783	3,032
Allowance for doubtful accounts	(406)	(288)
Total current assets	57,941	60,164
Non-current assets
Property, plant and equipment
Buildings and structures, net	6,409	6,611
Machinery, equipment and vehicles, net	1,543	1,695
Land	4,774	4,848
Other	1,608	2,486
Total property, plant and equipment	14,336	15,642
Intangible assets	524	472
Investments and other assets
Investment securities	2,223	2,289
Other	2,621	2,956
Allowance for doubtful accounts	(1)	(1)
Total investments and other assets	4,842	5,244
Total non-current assets	19,703	21,358
Total assets	77,645	81,523
Liabilities
Current liabilities
Notes and accounts payable - trade	13,386	11,177
Short-term borrowings	4,503	11,098
Current portion of long-term borrowings	2,254	2,176
Income taxes payable	417	11
Provisions	338	322
Other	5,329	4,474
Total current liabilities	26,229	29,259
Non-current liabilities
Long-term borrowings	8,325	7,310
Retirement benefit liability	2,979	2,952
Other	446	495
Total non-current liabilities	11,752	10,757
Total liabilities	37,981	40,017

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		(Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Net assets
Shareholders' equity
Share capital	5,362	5,362
Capital surplus	5,295	5,307
Retained earnings	27,097	27,370
Treasury shares	(1,539)	(1,823)
Total shareholders' equity	36,215	36,216
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	908	955
Deferred gains or losses on hedges	(0)	-
Foreign currency translation adjustment	2,199	3,989
Remeasurements of defined benefit plans	16	12
Total accumulated other comprehensive income	3,123	4,957
Share acquisition rights	322	330
Non-controlling interests	1	1
Total net assets	39,663	41,505
Total liabilities and net assets	77,645	81,523

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Net sales	24,977	22,580
Cost of sales	16,847	15,316
Gross profit	8,129	7,263
Selling, general and administrative expenses	6,527	6,490
Operating profit	1,601	773
Non-operating income
Interest income	13	2
Dividend income	70	109
Gain on valuation of derivatives	84	-
Other	132	118
Total non-operating income	299	230
Non-operating expenses
Interest expenses	58	80
Foreign exchange losses	115	103
Other	19	18
Total non-operating expenses	194	202
Ordinary profit	1,707	800
Extraordinary income
Gain on bargain purchase	-	152
Total extraordinary income	-	152
Profit before income taxes	1,707	953
Income taxes	457	388
Profit	1,249	565
Loss attributable to non-controlling interests	(9)	-
Profit attributable to owners of parent	1,259	565

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Consolidated statements of comprehensive income (cumulative)

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Profit	1,249	565
Other comprehensive income
Valuation difference on available-for-sale securities	(17)	46
Deferred gains or losses on hedges	3	0
Foreign currency translation adjustment	2,282	1,790
Remeasurements of defined benefit plans, net of tax	(2)	(3)
Total other comprehensive income	2,265	1,833
Comprehensive income	3,515	2,398
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	3,512	2,398
Comprehensive income attributable to non-controlling	2	-
interests

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Consolidated statements of cash flows

		(Millions of yen)
	Six months ended	Six months ended
	September 30, 2022	September 30, 2023
Cash flows from operating activities
Profit before income taxes	1,707	953
Depreciation	773	698
Gain on bargain purchase	-	(152)
Increase (decrease) in allowance for doubtful accounts	(11)	(147)
Increase (decrease) in provision for bonuses	29	19
Increase (decrease) in retirement benefit liability	(122)	(51)
Interest and dividend income	(83)	(111)
Interest expenses	46	80
Decrease (increase) in trade receivables	726	880
Decrease (increase) in inventories	(4,033)	(3,971)
Decrease (increase) in consumption taxes refund receivable	663	1,230
Increase (decrease) in trade payables	(1,721)	(2,908)
Other, net	(344)	(829)
Subtotal	(2,370)	(4,312)
Interest and dividends received	83	114
Interest paid	(53)	(131)
Income taxes paid	(926)	(692)
Net cash provided by (used in) operating activities	(3,267)	(5,021)
Cash flows from investing activities
Proceeds from withdrawal of time deposits	189	-
Purchase of property, plant and equipment	(1,096)	(1,384)
Purchase of intangible assets	(125)	(163)
Proceeds from purchase of shares of subsidiaries resulting in	-	58
change in scope of consolidation
Net cash provided by (used in) investing activities	(1,032)	(1,489)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings	1,546	6,334
Proceeds from long-term borrowings	2,036	1
Repayments of long-term borrowings	(1,055)	(1,352)
Dividends paid	(292)	(292)
Purchase of treasury shares	-	(304)
Repayments of finance lease liabilities	(51)	(62)
Net cash provided by (used in) financing activities	2,184	4,323
Effect of exchange rate change on cash and cash equivalents	544	269
Net increase (decrease) in cash and cash equivalents	(1,571)	(1,918)
Cash and cash equivalents at beginning of period	10,601	11,301
Cash and cash equivalents at end of period	9,030	9,383

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